Shutterstock (SSTK)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	255,958	292,573	215,671	388,215	489,070
Total current liabilities	US$ in thousands	625,286	452,386	383,734	333,784	256,929
Current ratio		0.41	0.65	0.56	1.16	1.90

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $255,958K ÷ $625,286K
= 0.41

The current ratio is a key financial ratio that reflects a company's ability to meet its short-term obligations using its current assets. Based on the data provided, Shutterstock's current ratio has shown a declining trend over the past five years.

As of December 31, 2020, the current ratio was 1.90, indicating that the company had $1.90 in current assets for every $1 in current liabilities. However, this ratio has decreased to 1.16 by December 31, 2021, suggesting a potential decrease in liquidity and the company's ability to cover its short-term debts.

Furthermore, the current ratio continued to decline to 0.56 by December 31, 2022, indicating a significant drop in the company's ability to meet its short-term obligations with current assets. This downward trend persisted in the following years, with the ratio reaching 0.65 by December 31, 2023, and further declining to 0.41 by December 31, 2024.

Overall, the decreasing trend in Shutterstock's current ratio raises concerns about the company's short-term liquidity position and its ability to efficiently manage current liabilities with available current assets. Investors and creditors may view this trend as a potential indicator of financial instability or cash flow challenges.